Answer on Algebra Question for tracey

2012-10-29T10:26:04-0400

Question #17483

An investor sells a stock short for $36 a share. A year later, the investor covers the position at $30 a share. If the margin requirement is 60 percent, what is the percentage return earned on the investment? Redo the calculations, assuming the price of the stock is $42 when the investor closes the position.